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Construction : General1213 | May 2011 | Source : Construction Update

ACC is up by 11.6 per cent in the first quarter, 2011

Despite the increased input costs, ACC has been able to keep its revenue up by 11.6 per cent by the first quarter of calendar year 2011 (Rs 3,893 a tonne). The low-cost coal availability is being considered the major factor in the contribution. The total volumes had been reported to be risen by 9.8 per cent and 10.4 per cent year-on-year.

Company official revealed that the total revenues of the company were up by 16 per cent sequentially, at Rs 2,420 crore, and 13.4 per cent year-on-year. It indicated that volumes increased by 10.4 per cent on-year to 6.1 million tonne in the first quarter, which was just 5.5 million tonne two year again. Experts believe that the growth is positive as the industry has witnessed deceleration in construction activity and slowdown in infrastructure. Expert is also expecting a hike of 15 Rs per share.

If company officials are to be believed, the cost per tonne has also declined 4 per cent, which has pushed EBITDA/tonne by a staggering 142 per cent. Considering the 33 per cent rise in the cost of raw material and 5 per cent in freight rate, ACC has been able to be in an excellent condition. Official said due to the low-cost coal inventory and increased use of captive power plants, company has been able to improve the efficiency.

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